Summary
A 35-year-old woman, employed by a Department of Defense contractor, was denied a security clearance for a public trust position. The denial was based on concerns under Guideline E (Personal Conduct) and Guideline F (Financial Considerations), primarily due to a history of financial irresponsibility and a deliberate failure to disclose these issues on her application.
The applicant had several delinquent accounts, including two $197 debts from August 2000, two $1,463 student loan accounts from November 2003, and a $2,960 judgment from January 2005 related to a vocational training institute. Additionally, a $95 retail store account from September 2005 was placed for collection due to insufficient funds checks. Although she filed for bankruptcy in August 2005, with debts discharged in December 2005, she incurred additional delinquent debts post-bankruptcy.
The judge found that the applicant deliberately failed to list her delinquent debts on her questionnaire for the public trust position. This omission, coupled with a lack of evidence demonstrating efforts to resolve her financial issues or make regular payments on her debts, including a repayment plan with the IRS, led to the denial of her security clearance.
Why the Applicant Was Denied
- Applicant filed for bankruptcy in August 2005, with debts discharged in December 2005, but incurred additional delinquent debts post-bankruptcy.
- She failed to disclose delinquent debts on her security clearance application, raising concerns about her honesty and reliability.
- The applicant provided no evidence of efforts to resolve her financial issues or to make regular payments on her debts, including a repayment plan with the IRS.
Conditions Referenced
- FC DC ¶19(a)raisedInability or Unwillingness to Satisfy Debts
- FC DC ¶19(c)raisedA History of Not Meeting Financial Obligations
- FC DC ¶19(e)raisedConsistent Spending Beyond One's Means
- PC DC ¶16(a)raisedDeliberate Omission or Falsification of Relevant Facts
Key Rule Quoted
“The adjudicative process is an examination of a sufficient period of a person’s life to make an affirmative determination that the person is an acceptable security risk.”
Procedural Posture
- SOR issuedSep 22, 2006
- Answer filedDec 5, 2006Applicant elected to have her case decided on the written record.
- Hearing held—No hearing; case decided on written record.
- Decision dateAug 29, 2007
Cite For
- Failure to Disclose Financial Issues on Security Clearance Applications Under Guideline E
- Impact of Financial Irresponsibility on Trustworthiness Determinations Under Guideline F
- Deliberate Falsification of Information as a Disqualifying Condition for Security Clearance